Real Estate Math
An investor purchases a fourplex for $800,000. The property generates $6,000/month in gross rents. What is the Gross Rent Multiplier (GRM)?
A133
B11.1✓ Correct
C66.7
D72,000
Explanation
GRM = Purchase Price ÷ Annual Gross Rent = $800,000 ÷ ($6,000 × 12) = $800,000 ÷ $72,000 ≈ 11.1. The GRM is a quick valuation metric that does not account for expenses.
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